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Some of the things that PSu can do, such as portfolios, are not covered by XMP standards. Writing the ICS schema while syncing to XMP allows the full catalog structure/content to be recovered by importing files into a new catalog without having to rely on a backup. Hert recommends that this setting is always on.
Reading the ICS schema is only necessary when recovering the catalog by importing previously synced files. Leaving this set to yes reduces performance in normal use, and Hert recommends leaving it off unless it is actually needed for disaster recovery.